SEC Brokers to Calculate Cash Custody Reserves Daily: Impact on Bond Funds

The Securities and Exchange Commission (SEC) has recently made changes to its customer protection rule, Rule 15c3-3. These amendments aim to enhance the protection of customer assets held by broker-dealers.

One of the key changes is the introduction of new requirements for broker-dealers to safeguard their customers’ securities. This includes implementing new controls and procedures to ensure that customer assets are properly segregated and protected.

Additionally, the amendments require broker-dealers to establish a system for regular account reconciliations to promptly identify and address any discrepancies. This helps to ensure that customer assets are accounted for accurately and any errors are quickly rectified.

Furthermore, the SEC has clarified the responsibilities of broker-dealers when it comes to maintaining excess customer securities. The amendments specify the circumstances under which broker-dealers are allowed to use customer securities to meet their own financial obligations.

Overall, these amendments to Rule 15c3-3 are designed to strengthen the protection of customer assets and enhance transparency in the securities industry. By implementing these changes, broker-dealers can better safeguard their customers’ assets and ensure compliance with regulatory requirements.